UK Gambling Firms Trim Staff as AI Cuts Costs Amid Slowing Revenue

The UK gambling sector is feeling the squeeze from stagnant growth and rising competition from prediction markets. Companies are responding by shrinking headcounts and embedding artificial‑intelligence tools in daily operations.

Penn Entertainment dismissed more than 75 staff in its Penn Interactive unit, which runs theScore Bet and online casino platforms. The division previously employed over 500 people, meaning the cuts represent roughly 15% of that workforce. The move follows earlier reductions in November and over the summer, and comes after the company reported $1.4 billion in first‑quarter revenue.

Gambling.com Group, operating under the GDC brand, slashed 25% of its staff—about 150 jobs—from a total workforce just under 600. The layoffs were announced alongside first‑quarter earnings that showed $40.4 million in revenue, a slight dip from the previous year’s $40.6 million. CEO‑to‑be Kevin McCrystle said the firm has been “AI‑first” for 18 months, with AI now generating 80% of new code and supporting marketing and sales functions. The restructuring is projected to save roughly $13 million annually.

Both firms cite AI adoption as a core cost‑saving measure. GDC’s shift to AI‑generated code reduces the need for traditional developers, while Penn’s broader AI strategy remains undisclosed but is presumed to target similar efficiencies. Analysts note that the industry’s growth has slowed since the 2018 Supreme Court ruling that lifted the federal ban on sports betting, leaving legacy cost structures exposed.

The layoffs underscore a broader trend: gambling operators are trimming staff to align expenses with modest revenue outlooks while betting on AI to boost productivity. Investors have punished the sector, with shares of major players like Flutter Entertainment down 56% year‑to‑date.

What to watch next: whether AI‑driven cost cuts translate into improved profit margins and how quickly competitors adopt similar technology to stay viable.